LAHORE: Fauji Fertilizer Company (FFC) Limited board has given go-ahead for an investment of $121 million in Thar Energy Limited (TEL).
In a notification sent to the exchange on Monday from the company said, “the shareholders of Fauji Fertilizer Company Limited (the “Company”), in an Extraordinary General Meeting of the Company, approved investment in Thar Energy Limited of up to USD 121 Million or its Rupee equivalent (inclusive of total equity investment of up to USD 39 Million and other sponsor support commitments).”
Previously, FFC in a notification sent to the exchange earlier this month said “On April 3, 2018, the board of directors of FFC recommended for approval by the company’s members in terms of Section 199 of the Companies Act, 2017 at an Extraordinary General Meeting of the Company, equity investment of up to $39 million (or its rupee equivalent) and sponsor support commitments of up to an additional $82 million in Thar Energy Limited (TEL).”
The decision has been taken by FFC further to its decision to invest equity in TEL amounting to $10 million, taken on January 30, 2018, as a result of which TEL will become an associated company of FFC.
“Hence the approval of FFC’s shareholders is being sought for the investments to be made in TEL after it becomes an associated company of FFCL, comprising equity investment of up to $39 million, inclusive of the said equity investment of up to $10 million to be made prior to the date of the EGM, and sponsor support commitments of up to an additional $82 million, thereby resulting in total investment of to $121 million,” the notification further read.
FFC, incorporated in 1978 manufactures, purchases, and markets fertilizers and chemicals in Pakistan and Morocco.
Thar Energy Limited develops, owns, operates, and maintains a mine mouth coal power plant for generation of electricity. The company was incorporated in 2016 and is based in Karachi, Pakistan.
FFC shares were trading at Rs96.25, up Rs1.07 (+1.12 percent) at time of filing this report. KSE-100 index in the first hour was trading at 45,847.52 points, down 29.18 points.